We Believe XMAX is a Malaysian Hustle: Apparently Fabricated “Purchase Orders” From a Preschool and an Unrequited AI Deal Set the Stage for Up to a Billion in Dilution

We are short XMAX (“XMAX Inc.” former ticker XWIN) because we believe it is a Malaysian hustle peddling a furniture-to-AI fantasy in hopes it can persuade retail to sign up for horrendous dilution. Our investigation into XMAX reveals it has provided investors with false and contradictory claims about its suppliers, customers, a key AI deal, its purported investments in SpaceX/xAI, and its management team. This should be no surprise to those familiar with XMAX’s history; it and its management team were sued in 2018 for allegedly fabricating customers and the individual defendants tied to the company were accused of offloading millions in shares at artificially inflated prices. That suit settled for a mere $750,000. How’s that for deterrence?

XMAX was just three days away from being delisted for having < $2.5 million in stockholders’ equity when it announced “purchase orders” for ~$4.6 million in stone slabs from five Malaysian suppliers in exchange for stock, which raised equity and prevented delisting. Our site visits show none of these businesses were at the addresses we searched. We found that one of the addresses provided was a preschool. Our review of Malaysian corporate documents shows none of the five suppliers (if they exist somewhere) describe themselves as being in the business of selling stone slabs. We also found that at least two of these suppliers appear to be undisclosed related parties.

In February 2025, XMAX announced another set of “purchase orders” of stone slabs from four new Malaysian suppliers, this time for $3.2 million in exchange for stock. Two of these entities do not appear to exist. A third, according to corporate documents, “ceased its businesses” over a year before the deal, and the last, according to our site visit, is not at the location provided.

The stone slabs from these Malaysian suppliers never appeared in XMAX’s disclosed quarterly inventory. Instead, XMAX supposedly sold them to a mystery Hong Kong customer on credit. However, XMAX’s disclosures concerning the sale are contradictory, and the description of the “purchased” products doesn’t match what was “sold.”

XMAX switched auditors in 2024 to a recently formed Singaporean firm, Enrome LLP, which was named as a co-defendant in a suit against Smart Digital Group Limited (SDM), which allegedly crashed 86.4% on no news and had been “a vehicle utilized in a market manipulation and ‘pump-and-dump’ promotional scheme.” How reassuring.

We believe XMAX’s pivot to AI is bullshit. On April 22nd, it claimed it had made a deal with a US subsidiary of SUPX (which itself was written up by J-Cap and Pelican Way) to purchase $4.8 million worth of AI services. However, SUPX has said nothing about this deal even though it would clearly be material for a company that made just $3.6 million in revenue in 2025.